2018 PALL INVESTOR & ANALYST DAY. September 18, 2018

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1 2018 PALL INVESTOR & ANALYST DAY September 18, 2018

2 Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things deterioration of or instability in the economy, the markets we serve and the financial markets, developments and uncertainties in U.S. policy stemming from the current administration, such as changes in U.S. trade and tariff policies and the reaction of other countries thereto, contractions or growth rates and cyclicality of markets we serve, competition, our ability to develop and successfully market new products and technologies and expand into new markets, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including regulations relating to medical devices and the health care industry), our ability to effectively address cost reductions and other changes in the health care industry, our ability to successfully identify and consummate appropriate acquisitions and strategic investments and successfully complete divestitures and other dispositions, our ability to integrate the businesses we acquire and achieve the anticipated benefits of such acquisitions, contingent liabilities relating to acquisitions, investments and divestitures (including tax-related and other contingent liabilities relating to the past distributions of each of Fortive Corporation and our communications business and the anticipated spin-off of our Dental business), security breaches or other disruptions of our information technology systems or violations of data privacy laws, the impact of our restructuring activities on our ability to grow, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, changes in tax laws applicable to multinational companies, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, the rights of the United States government to use, disclose and license certain intellectual property we license if we fail to commercialize it, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, the impact of our debt obligations on our operations and liquidity, our relationships with and the performance of our channel partners, uncertainties relating to collaboration arrangements with third parties, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, the impact of deregulation on demand for our products and services, labor matters, international economic, political, legal, compliance and business factors (including the impact of the UK s United Kingdom s decision to leave the EU and changes in US policy stemming from the current administration, such as changes in US trade policies and the reaction of other countries thereto), disruptions relating to man-made and natural disasters, and pension plan costs. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2017 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the second quarter of These forward-looking statements speak only as of the date of this presentation and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. With respect to the non-gaap financial measures referenced in the following presentation, the accompanying information required by SEC Regulation G can be found in the back of the presentation and in the Investors section of Danaher s web site, under the heading Quarterly Earnings. All references in this presentation (1) to company-specific financial metrics relate only to the continuing operations of Danaher s business, unless otherwise noted; (2) to growth or other period-to-period changes refer to year-over-year comparisons unless otherwise indicated; (3) to Operating Profit below the segment level exclude amortization; and (4) to today refers to the Company s 2017 performance. We may also describe certain products and devices which have applications submitted and pending for certain regulatory approvals. 2

3 Agenda 12:00 PM Welcome Matt Gugino 12:05 PM Life Sciences Platform Overview Rainer Blair 12:25 PM Pall Overview DBS at Pall Innovation at Pall Pall Industrial Pall Biotech Jennifer Honeycutt John Dion Martin Smith Hermes Gonzalez Mario Philips 1:55 PM Q&A Blair, Honeycutt 2:10 PM Break & gather into groups for Gemba Walk All 2:30 PM Gemba Walk All 4:00 PM Cocktail Hour All 5:00 PM Program Ends All 3

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5 LIFE SCIENCES Rainer Blair, Executive Vice President 2018 PALL INVESTOR & ANALYST DAY

6 Danaher Today LIFE SCIENCES ~$4.0B ~$5.7B DIAGNOSTICS ~$5.8B ENVIRONMENTAL & APPLIED SOLUTIONS DENTAL ~$2.8B WATER QUALITY PRODUCT ID All financial metrics reflect FY 2017 revenue unless otherwise indicated Including the IDT acquisition (closed April 2018) with ~$0.3B FY 2017 revenue, Life Sciences platform FY 2017 revenue would have been ~$6.0B Multi-industry science & technology portfolio provides competitive advantages 6

7 LIFE SCIENCES Equipment 35% Revenue By Mix Consumables 65% ~$6.0B TOTAL REVENUE (incl. IDT) By Geography ROW 9% HGM 27% EU 28% NA 36% By End-Market +MSD >25% CORE REVENUE GROWTH EBITDA MARGIN All financial metrics on this slide reflect FY 2017 revenue plus IDT s FY 2017 revenue of ~$0.3B All references to consumables throughout this presentation include consumables and other recurring revenue 7 Research Industrial Applied Clinical Biopharma Pharma Strong global brands with leading market positions

8 Life Sciences Platform Evolution 5 YEARS AGO ~$2.3B REVENUE +LSD CORE GROWTH ~35% CONSUMABLES ~52% GROSS MARGIN Mid/high EBITDA MARGIN teens Revenue By End-Market Other Research Applied Ind. Biopharma Clinical Pharma TODAY* ~$6.0B REVENUE +MSD CORE GROWTH ~65% CONSUMABLES ~55% GROSS MARGIN >25% EBITDA MARGIN Revenue By End-Market Research Industrial Applied Clinical Biopharma Pharma * All financial metrics reflect FY 2017 revenue plus IDT s FY 2017 revenue of $0.3B Pre Today Enhancing our growth trajectory with DBS rigor & inorganic opportunities 8

9 How We Win in Life Sciences OUR STRATEGIC FOCUS HIGH GROWTH SEGMENTS Indexing our portfolio to high-growth end-markets in terms of applications (i.e. biologics, genomics, applied, gene therapy) ~$1.5B REVENUE EXPOSURE TO BIOLOGICS INNOVATION Best-in-Class analytical technologies & high level of innovation focused on key applications >10% R&D SPEND CAGR LAST 3 YEARS COMMERCIAL Global high-tech sales force to target highest growth segments & regional opportunities; differentiated service offering with frequent, high-quality customer touch points +HSD SERVICE REVENUE CAGR LAST 3 YEARS HIGH GROWTH REGIONS Meaningfully expanding our presence in HGM like China, where we have established local R&D and manufacturing capabilities: in China, for China +DD CHINA ANNUAL REVENUE CAGR LAST 3 YEARS Focused on areas of highest growth & highest customer impact 9

10 Leading Global Brands Serving Attractive Markets % OF LS SEGMENT REVENUE BIOLOGICS INDUSTRIAL APPLIED (FOOD, ENV., FORENSICS) RESEARCH & ACADEMIC ~25% ~25% ~15% ~15% CLINICAL ~15% Strong secular drivers underpinning growth opportunities 10

11 Our Biologics Business WORKFLOW Lead Generation / Optimization Cell Line Development Pre-Clinical / Clinical Process Development Drug Production (Process Development / Clinical & Commercial) MARKET GROWTH +DD +DD +HSD +HSD +DD DHR OPCO DHR REVENUE ~$500M ~$1B ~$1.5B business well-positioned across biologics workflow 11

12 How We Win With Innovation: Beckman Life Sciences RESULTS OVER THE LAST 5 YEARS S&M* +200BPS Number of New Product Launches ~3 LDT 1 ~20 BIOMEK I-SERIES AUTOMATED WORKSTATIONS * As a % of sales R&D* +50BPS 3 Years Pre-Acq. Last 3 Years CYTOFLEX LX Flat CORE GROWTH AT THE TIME OF ACQUISITION +MSD CORE REVENUE GROWTH CAGR LAST 3 YEARS Stronger cadence of innovation helping drive share gains 12

13 Recent Acquisitions: a Tailored DBS Approach for Each Added attractive genomics consumables adjacency >95% CONSUMABLES >95% CONSUMABLES Added attractive SCIEX adjacency in chromatography consumables ~85% CONSUMABLES Strong franchise in attractive, fast-growing markets INITIAL PRIORITIES / KEY AREAS OF DBS FOCUS 1) BUILD SCALE GLOBALLY 2) ENHANCE COMMERCIAL EXECUTION 3) EXPAND PORTFOLIO 1) ENHANCE GO-TO-MARKET CAPABILITIES 2) IMPROVE OPERATIONAL LEVERAGE 3) BUILD SCALE GLOBALLY 1) ACCELERATE INNOVATION 2) IMPROVE EXECUTION 3) REDUCE COSTS Initial priorities and areas of DBS focus are tailored to each acquisition 13

14 Five Year Financial Summary LIFE SCIENCES PLATFORM Total Revenue ~$5.4B ~$6.0B* RESULTS: LAST 5 YEARS +MSD CORE REVENUE CAGR ~$2.3B ~$2.4B ~$2.5B ~$3.3B +300BPS GROSS MARGIN EXPANSION ~850BPS OPM EXPANSION * Reflects FY 2017 revenue plus IDT s FY 2017 revenue of $0.3B OP & OPM exclude amortization >20% OP CAGR DBS driving tremendous value creation 14

15 Summary Life Sciences portfolio evolution has increased our recurring revenue & exposure to the most attractive parts of the market Better commercial and innovation execution through DBS along with M&A enhances our growth and earnings trajectory Today you ll hear from Pall leaders about the tailored DBS integration and execution improvements since acquisition 15

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17 PALL Jennifer Honeycutt, President 2018 PALL INVESTOR & ANALYST DAY IR GET HIGHER RES IMAGE

18 STRONG GLOBAL GROWTH DRIVERS Expanding production of biopharmaceuticals Increasing global standards of medical care Environmental and safety regulations Growing complexity in electronics manufacturing All financial metrics based on FY 2017 unless otherwise indicated All references to consumables throughout this presentation include consumables and other recurring revenue * YTD through Q2 18 Operating Profit Margin excludes amortization 18 PALL LIFE SCIENCES Biotech (incl. Biopharma & SUT) Medical Lab, Food & Beverage PALL INDUSTRIAL Microelectronics Aerospace Process & Industrial Revenue By Mix Equipment 15% Consumables 85% By Geography HGM ROW EU NA By End-Market MicroE Aero Process & Industrial Lab, F&B Biotech Medical ~$3B +MSD >25% TOTAL REVENUE CORE REVENUE GROWTH* OPERATING PROFIT MARGIN Global technology leader in filtration, separation & purification

19 Danaher Business System (DBS) Leadership Lean Growth DBS is our competitive advantage: it s who we are, and how we do what we do 19

20 Key Priorities at Acquisition ACCELERATE INNOVATION Accelerating innovation through reinvestment and focused R&D processes Lean Leadership Growth IMPROVE EXECUTION DBS commercial initiatives driving better goto-market capabilities; meaningful gains in quality & delivery REDUCE COSTS Reducing manufacturing & operating costs Lean Leadership Growth Tailored integration approach led by DBS 20

21 Accelerating Innovation SITUATION AT ACQUISTION Strong innovative foundation Long development cycle times Lack of project focus & prioritization DBS ACTIONS Accelerated Product Development Speed Design Review to rapidly assess & convert concepts to actionable projects Product Planning Group to coordinate execution & resources across multiple projects Preserving entrepreneurial spirit with DBS rigor RESULTS SINCE ACQUISITION On-Time To Market (Projects) <65% ~80% 2015 Today +MSD CORE REVENUE GROWTH YTD THROUGH Q2 18 VS. +LSD AT ACQUISITION DBS enables effective investment in innovation for competitive advantage 21

22 Improving Execution: Commercial SITUATION AT ACQUISTION Limited market visibility & contacts Little to no digital marketing capabilities Obsolete web platform with limited lead generation capability No repeatable process for generating / nurturing high-quality sales leads DBS ACTIONS RESULTS SINCE ACQUISITION CONTACTS/ +80% VISIBILITY +15% WIN RATE Transformative Marketing Lead Handling Funnel Management VISIBILITY & CONTACTS CAMPAIGNS & EVENTS QUALIFIED LEADS SALES FUNNEL WIN RATE ORDERS & SALES Using DBS to drive better, sustainable S&M processes and growth 22

23 Improving Execution: On-Time-Delivery SITUATION AT ACQUISTION Complicated supply chain & production set-up Long manufacturing lead-times Low on-time delivery RESULTS SINCE ACQUISITION >2,000BPS IMPROVEMENT IN ON-TIME DELIVERY (OTD) DBS ACTIONS Developed DBS leaders for each plant Lean Conversion implemented in each plant Inventory Management to improve OTD Average Manufacturing Lead Times (weeks) 2015 Today -25% 23 Kaizen and DBS fundamentals helped address delivery challenges

24 Reducing Costs SITUATION AT ACQUISTION High inventory, scrap & logistics costs High indirect/non-customer-facing costs DBS ACTIONS Inventory Management to improve OTD and linked costs Lean Conversion to create efficient processes to produce & deliver to customers needs Dynamic Kanban to eliminate over-production: the right parts, at the right time, in the right quantity RESULTS SINCE ACQUISITION >$250M TOTAL ANNUAL COST SAVINGS ACHIEVED TO DATE Reduced Indirect Costs (as % of sales) 2015 Today -400BPS Cost savings ahead of initial expectations 24

25 INDUSTRIAL LIFE SCIENCES M&A Update RECENT ACQUISITIONS AT ACTIONS SINCE DANAHER ACQUIRED PALL Focused our strategic approach to M&A Additional M&A team buildout at Pall Enhanced internal M&A processes Expanded in-house market work & capabilities Significantly increased cultivation funnel POROMEMBRANE Produces & designs hollow fiber filtration membranes Serves various industry verticals AWC FILTRATION SENSIQ Provides label free detection instrumentation Part of ForteBio Former Pall distributor Distributes filters, designs & sells housings Highly experienced and successful sales team Increases presence in the US Gulf Coast market largest, densest market for refineries and chemical plants Bringing rigor and process to M&A to enhance Pall s opportunities 25

26 Putting It All Together RESULTS SINCE ACQUISITION AT ACQ. TODAY Core Growth LSD MSD* Gross Margin ~50% ~55% ACCELERATE INNOVATION IMPROVE EXECUTION +2X >2,000BPS % OF REVENUE ACHIEVEMENT FROM NEW PRODUCTS ON-TIME DELIVERY IMPROVEMENT OP Margin High-teens >25% G&A** R&D** S&M** >25% ~5% ~7% * YTD through Q2 18 ** $ spend REDUCE COSTS >$250M ANTICIPATED CUMULATIVE ANNUAL COST SAVINGS SINCE ACQUISITION ANNUAL COST SAVINGS ACHIEVED YEAR 1: ~$125M YEAR 3: >$250M YEAR 5: ~$350M Rapid DBS adoption has been a critical driver of Pall s great start 26

27 The Best Team Wins Chief Financial Officer President of Pall Industrial VP of Lab Food & Bev. SENIOR LEADERSHIP TEAM President Jennifer Honeycutt VP of Strategy & Business Development VP of China General Counsel SVP of Marketing SVP of HR SVP of Global Operations VP of Pall Biotech SVP of Service, Customer Service & DBS PALL S LEADERSHIP TEAMS ARE COMPRISED 100% OF A MIX OF: Infused Danaher leaders Retained Pall Leaders Promoted Pall talent Added external hires INTERNAL FILL RATE FOR THE L1 TEAM Chief Technology Officer VP of Pall Medical Infused DHR Leaders Promoted Pall Talent Presidents & GMs CFO / Finance Service / DBS HR China GMs General Counsel Operations Marketing Retained Pall Leaders Added External Hires GMs CTO / Technology GMs Business Development Entire Pall senior leadership team filled by internal candidates 27

28 What You ll Hear Today: Examples of Executing Key Priorities DBS John Dion INNOVATION Martin Smith PALL INDUSTRIAL Hermes Gonzalez PALL BIOTECH Mario Philips ACCELERATE INNOVATION IMPROVE EXECUTION REDUCE COSTS 28

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30 DBS AT PALL John Dion, SVP Customer Service, Service & DBS 2018 PALL INVESTOR & ANALYST DAY

31 What You ll Hear Today DBS John Dion INNOVATION Martin Smith PALL INDUSTRIAL Hermes Gonzalez PALL BIOTECH Mario Philips ACCELERATE INNOVATION IMPROVE EXECUTION REDUCE COSTS 31

32 Danaher Business System (DBS) Leadership Lean Growth DBS is our competitive advantage: it s who we are, and how we do what we do 32

33 What Differentiates DBS It is a mindset and it is our culture DBS is who we are, and how we do what we do DBS is constantly evolving: in the spirit of continuous improvement, we are always DBSing DBS DBS is broadly applicable across functions, adaptable to unique business opportunities Common sense, vigorously applied 33

34 Transition Leadership at Pall Transition Lead John Dion TRANSITION TEAM Cross-functional workstreams each led by a Pall leader + DHR leader Early DBS Immersion for Pall L1 & L2 leadership teams Leadership roles on transition teams tend to lead to additional opportunities across the OpCo and Danaher Finance PALL + DHR Lean / DBS PALL + DHR Technology PALL + DHR IT PALL + DHR Ops & Procuremt. PALL + DHR Quality & Regulat. PALL + DHR EHS PALL + DHR HR / Comms PALL + DHR Strategy PALL + DHR Growth / Commrcl. PALL + DHR Legal PALL + DHR The Best Team Wins 34

35 Pall s DBS Integration INTEGRATION PROCESS >50 DHR associates facilitated DBS post close >300 kaizen events in year one post close >70% of associates completed DBS training in the first 90 days Number of Kaizens & DBS Focus Areas DBS Focus 1. Daily Mgmt. 2. Lean Conversion 470 DBS INTEGRATION TEAM 6 DBSO EXPERTS AT PALL FULL TIME FOR YEAR GROWTH DBSL S FOR COMMERCIAL & PRODUCT DEVELOPMENT 29 LEAN MANUF- ACTURING DBSL S DEPLOYED TO PLANTS E Current DBS Focus 1. Lean Conversion 2. Variation Reduction 3. Set-up Time 4. Quality System Basics 5. DHR Materials System 6. DHR Reliability System 35

36 Meaningful Cost Savings Since Acquisition BREAKDOWN OF COST SAVINGS >$250M ANNUAL COST SAVINGS ACHIEVED SINCE ACQUISITION Productivity Initiatives OpEx Manufacturing Gross Margin ~50% At Acq. ~55% Today EXAMPLES >$40M >$20M Operating Profit Margin Highteens >25% SAVINGS FROM PROCUREMENT & SCRAP REDUCTION SAVINGS FROM FACILITY CONSOLIDATION & LINE MOVES At Acq. Today 36

37 Working Capital Improvement SITUATION AT ACQUISITION Limited Standard Work across complex and decentralized collections teams Inventory planning based on recent demand Large and under-utilized supplier base RESULTS SINCE ACQUISITION A/P (Days Payable) +20 DAYS Inventory Reduction -30% DBS ACTIONS Accounts Receivable: Daily Management drives visibility and prioritization Inventory: Danaher Materials System and improved forecasting process drove meaningful reductions Accounts Payable: More diligent usage of procurement card and supplier negotiations At Acq. Today +25% IMPROVEMENT IN WORKING CAPITAL TURNS At Acq. Today ~$200M WORKING CAPITAL REDUCTION 37

38 Lean in Action: OTD & Productivity Example SITUATION AT ACQUISTION Large backlog, demand spikes, and poor OTD 3 shifts + weekend overtime DBS ACTIONS 5 kaizen weeks, 16 improvement areas Lean Conversion, Standard Work, Variation Reduction Kaizen (VRK), Daily Management, setup reduction principles, Heijunka RESULTS -50% FOOTPRINT -70% SET-UP TIME +150% PRODUCTIVITY Before +2X WEEKLY OUTPUT On-Time Delivery (OTD) ~50% 3 SHIFTS INTRAVENOUS FILTER OUTPUT IN NEWQUAY After >90% 2 SHIFTS 2015 Today 38

39 Lean in Action: Scrap Reduction Example SITUATION AT ACQUISTION High scrap levels & material losses Excessive change-over time impacting OTD DBS ACTIONS Variation Reduction Kaizen (VRK) and set-up reduction principles Standard Work for job sequencing Simplification and rationalization of component complexity Before After RESULTS Material Loss Reduction Reduced Changeover Time ~$1M CORRUGATOR SCRAP IN DELAND TOTAL IMPACT TO PALL -$250K -50% 39

40 Summary DBS is our competitive advantage: it s who we are, and how we do what we do DBS enables a comprehensive and tailored approach for acquisition integration & leadership readiness We are driving meaningful, sustainable improvements across Pall using DBS 40

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42 INNOVATION AT PALL Martin Smith, Chief Technology Officer 2018 PALL INVESTOR & ANALYST DAY

43 What You ll Hear Today DBS John Dion INNOVATION Martin Smith PALL INDUSTRIAL Hermes Gonzalez PALL BIOTECH Mario Philips ACCELERATE INNOVATION IMPROVE EXECUTION REDUCE COSTS 43

44 Innovation Improvement Priorities at Acquisition FOCUS Better allocating resources to & prioritizing high-impact projects >80% NEW PRODUCT REVENUE ACHIEVEMENT VS. ~45% AT ACQUISITION TIMING Driving better on-time-to-market for new products -25% AVERAGE REDUCTION IN PROJECT TIMELINES PROCESS Using DBS to enhance Pall s innovation engine: selecting, accelerating & streamlining development projects +40% ANNUAL NEW PRODUCT PROJECT PIPELINE GROWTH BALANCE Shift from iterative projects to a balanced R&D portfolio including game change technology introduction +MSD AVERAGE ANNUAL INCREASE IN R&D SPEND SINCE ACQUISITION Innovation as Pall s competitive advantage 44

45 Impact of Innovation Initiatives: Recent New Product Launches SUT BIOPHARMA PROCESS & INDUSTRIAL MICROE ALL PALL * Pall patents pending mpath Control Tower Bioreactor automation & controls In Line Diafiltration (ILDF)* Continuous bioprocessing Crixus * fluid health monitoring, IoT, lube & hydraulic filtration Scorpion XP5nm* microchip fabrication Boris* Metallic filters with enhanced manufacturing processes Cadence ILDF Crixus Fully continuous biomolecule conditioning reducing process steps Enabling customer workflow cost efficiencies and process analytics ~50% PROPORTION OF PALL S ANNUAL GROWTH ATTRIBUTABLE TO NPD REVENUE VS. 30% AT ACQUISITION Helping to enhance Pall s core revenue growth rate over time 45

46 Summary Innovation leadership in material science, filter design and customer workflow intimacy are Pall s sustainable competitive advantages R&D structure driving cross-application technology leverage to deliver higher-impact new products to customers faster Continuously improving innovation focus with DBS enables Pall to expand incremental revenue opportunity from new products 46

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48 PALL INDUSTRIAL Hermes Gonzalez, President 2018 PALL INVESTOR & ANALYST DAY IR TO GET HIGHER RES VERSION

49 What You ll Hear Today DBS John Dion INNOVATION Martin Smith PALL INDUSTRIAL Hermes Gonzalez PALL BIOTECH Mario Philips ACCELERATE INNOVATION IMPROVE EXECUTION REDUCE COSTS 49

50 PALL INDUSTRIAL PROCESS & INDUSTRIAL AEROSPACE MICRO- ELECTRONICS Revenue By Mix Equipment 25% Consumables 75% >$1B TOTAL REVENUE OUR SOLUTIONS HELP CUSTOMERS OPTIMIZE PROCESSES AND ENSURE HEALTH & SAFETY Filter & purify valuable process fluids Protect valuable downstream assets and the environment Retrieve valuable components All financial metrics based on FY 2017 unless otherwise indicated * YTD through Q2 18 By Geography ROW HGM EU NA By Business Aerospace Process Microelectronics & Industrial +MSD ~$6B CORE REVENUE GROWTH* ADDRESSABLE MARKET SIZE Leading provider of critical filtration solutions in attractive end-markets 50

51 Strong Secular Growth Drivers HIGH GROWTH MARKETS MICROELECTRONICS AEROSPACE REFINING & PETROCHEMICALS +$1T ~600 +2X >40% CHINA INFRASTRUCTURE SPEND OVER NEXT DECADE AS PART OF ONE BELT, ONE ROAD POLICY DATA SENSOR CHIPS IN FUTURE CARS vs. ~300 today NUMBER OF COMMERCIAL AIRCRAFT MANUFACTURED GLOBALLY NEXT 20 YEARS GLOBAL ETHYLENE CAPACITY INCREASE BY 2025 Well-positioned for compelling long-term growth opportunities 51

52 How We Win at Pall Industrial MICRO- ELECTRONICS PROCESS & INDUSTRIAL AEROSPACE Innovation leader helping customers achieve most critical workflow challenges Support: Unparalleled, highly technical & consultative support Quality: Highest product quality fulfilling industry s strict requirements Product portfolio focused on critical value-added process applications Innovation: Flexible offering for asset protection OEM customers Global scale: Superior global commercial & operational footprint Quality: 70+ years providing reliable, highest quality products & services Innovation: End-customer & OEM joint development of next-gen safety & detection technologies Global GTM: Globally managed and coordinated commercial strategy Strong global presence, supporting customers technical & commercial ecosystem 52

53 Actions & Results Since Acquisition ACCELERATE INNOVATION Enhancing NPD processes & cadence >2,000BPS INCREASE IN NPD REVENUE ACHIEVEMENT IMPROVE EXECUTION Focusing go-to-market approach, driving better HGM penetration +2X GLOBAL KEY ACCOUNTS REVENUE OPERATIONAL IMPROVEMENTS Meaningful gains in productivity, quality & delivery >1,000BPS INCREASE IN OTD >50% DECREASE IN PRODUCT DEFECTS (PPM) DBS helping to deliver sustainable improvements, accelerate growth 53

54 Microelectronics: Winning With Innovation DBS ACTIONS Voice of the Customer (VOC): I need to commercialize Nodes 10 and 7 we need help achieving attractive IC yields. Accelerated Product Development: I need to image increasingly finer feature sizes need help integrating more aggressive Litho solvents into workflow. RESULTS OF REVENUE TODAY IS FROM PRODUCTS LAUNCHED >25% OVER LAST 5 YEARS +1.5X Customers Talk, We Listen Highly asymmetric membrane differentiates with increased flow & retention, driving higher yields 2 nm HAPAS NTD2 CHINA REVENUE SINCE 2015 >200BPS Withstands aggressive solvents & extreme cleanliness to solve customer process goals SHARE GAINS OVER LAST TWO YEARS Enhancing product offering to solve ever-evolving, complex customer challenges 54

55 Process & Industrial: Better Execution With DBS SITUATION AT ACQUISITION Highly fragmented operational and logistical footprint Inconsistent, regionally-driven GTM strategy Limited focus on & development of global key accounts DBS ACTIONS Standard Work: Standardized operational processes and aligned global resources Lean Conversion: Streamlined and consolidated complex operational footprint Implemented Global Key Accounts program RESULTS SINCE ACQUISITION >1,000BPS +500BPS +15% OPERATING PROFIT MARGIN EXPANSION GLOBAL SALES PRODUCTIVITY OTD IMPROVEMENT Implementing a systematic & disciplined approach with DBS 55

56 Aerospace: Improving Commercial Processes SITUATION AT ACQUISITION Relationship-based selling, mostly via OEM s, with limited end-user intimacy Functionally-based strategic priorities lacked cohesive business-wide vision and direction DBS ACTIONS Sales Force Initiative: Americas sales force reorganization, prioritizing end-user intimacy Strategic Planning: Implemented businesswide process RESULTS SINCE ACQUISITION +45% SALES FUNNEL GROWTH +2,000BPS WIN RATE Strategic realignment and DBS focus driving sustainable growth 56

57 Summary High quality product portfolio strategically aligned to address critical customer challenges Broad exposure to strong secular drivers across attractive, fastgrowing end-markets DBS initiatives driving meaningful, sustainable process improvements and contributing to share gains 57

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59 PALL BIOTECH Mario Philips, VP & General Manager 2018 PALL INVESTOR & ANALYST DAY

60 What You ll Hear Today DBS John Dion INNOVATION Martin Smith PALL INDUSTRIAL Hermes Gonzalez PALL BIOTECH Mario Philips ACCELERATE INNOVATION IMPROVE EXECUTION REDUCE COSTS 60

61 PALL BIOTECH EXCEPTIONAL PROCESS SOLUTIONS FOR BIOTECH & BIOLOGICS including mabs, gene therapy, vaccines, plasma, etc. and small molecule pharmaceuticals RELIABLE INDUSTRY PARTNER HELPING TO IMPROVE GLOBAL HEALTH Provides complete solutions from cell culture through to formulation & filling Key contributor to development & manufacture of many life-saving drugs on the market today Continuously improving bioprocesses for customers across all phases of drug development All financial metrics based on FY 2017 unless otherwise indicated * YTD through Q2 18 >$1B ~$300M TOTAL REVENUE +HSD/LDD CORE REVENUE GROWTH* SINGLE USE TECHNOLOGIES REVENUE TODAY Leading supplier of integrated, end-to-end bioprocessing technologies & support 61

62 Strong Secular Growth Drivers BIOLOGICS PIPELINE EVOLUTION OF LIFE SCIENCE RESEARCH HIGH GROWTH MARKETS GENE THERAPY BIOSIMILARS >2K ~40% ~20% >30% >20% NUMBER OF BIOLOGICS CURRENTLY IN THE APPROVAL PIPELINE vs. >350 on the market OF ALL DRUGS IN THE DEVELOPMENT PIPELINE ARE BIOLOGICS vs. ~20% 15 years ago BIOPHARMA CAGR IN CHINA EXPECTED THROUGH 2020 CAGR EXPECTED GLOBALLY NEXT 5 YEARS EXPECTED INCREASE IN PRODUCTION FROM 2016 TO Well-positioned to win in attractive market with significant runway

63 How We Win at Pall Biotech OUR STRATEGIC FOCUS HIGH GROWTH SEGMENTS Global technology leader in Continuous Bioprocessing and SUT; expanding gene therapy offering TOUCHES EVERY STEP OF BIOPRODUCTION INNOVATION COMMERCIAL Streamlining scientific and bioprocess development while delivering cost & time savings for customers Market visibility driving win rate for early stage drug specifications New Biotech GTM model to build end-to-end solution capability to win in capacity expansion Focused on areas of highest impact & maximum value to customers 63

64 CONTRIBUTION Innovation Leadership in the Evolution of Bioprocessing 10 YEARS AGO TODAY FUTURE Stainless-steel infrastructure Equipment supplier Filtration tech expert Leader in driving SUT filtration in under-penetrated market Continuous Bioprocessing Process development partner Process and application expert End-to-end supplier with PDS at scale and modular manufacturing suites Process economics leader Leader in gene therapy; viral vectors SUT leader CUSTOMER IMPACT Facility efficiency Manufacturing flexibility Development partnership Speed to market Processing time Operating costs Footprint Capital spending Bioprocessing enhancements contribute to market share gains 64

65 Single-Use Technologies DELIVERING MEANINGFUL IMPROVEMENTS FOR CUSTOMER PROCESSES Reduce cleaning & validation requirements and costs Higher flexibility and faster turnaround Fully validated solutions with extensive support options Guarantee supply chain security CUSTOMER RESULTS -30% AVG. REDUCTION IN COST OF GOODS SOLD -50% REDUCTION IN CAPEX icellis Bioreactor -50% AVG. REDUCTION IN TURNAROUND TIME Pall SUT Revenue CAGR ~$300M Today <20% of today s marketed drugs use SUT in their production processes 65

66 SALES FUNNEL MARKETING FUNNEL Commercial Execution Driving Growth SITUATION AT ACQUISTION Limited process for improving market visibility Little to no digital marketing capabilities No repeatable process for generating / nurturing high-quality sales leads DBS ACTIONS Transformative Marketing: Disciplined marketing campaigns to improve visibility & account coverage Lead Handling: Prioritize & deliver more qualified leads to sales Funnel Management: Streamlined sales funnel process to improve win rates 2017 RESULTS CONTACTS / VISIBILITY +50% LEADS +6.5X OPPORTUNITIES +2X WIN RATE % +15% Using DBS to improve S&M processes and drive better growth 66

67 Pall as a Partner: Technical Service & Support Providing value beyond our products, across our customers entire biologics workflow from R&D through to commercialization SCIENTIFIC & LAB SERVICES (SLS) Centers of Excellence: state-of-the-art analytical testing services Customer Support Centers: small labs for basic testing Lab Centers: advanced laboratory testing, failure analysis and validation services R&D CENTERS OF EXCELLENCE (COE) Facilities built to streamline scientific and bioprocess development, while delivering cost and time savings Tech Transfer Site Acceptance Test & Start-up Factory Acceptance Test BIOTECH SERVICES Facility Modelling >20% AVG. ANNUAL SERVICE REVENUE GROWTH OVER LAST 3 YEARS Project Engineering Process Economics Process Development Services Project Management Differentiating with service innovation & technical expertise 67

68 Summary Well-positioned and differentiated product portfolio in the most attractive, fastest growing parts of the biopharma market Innovation leader solving customers most critical bioprocessing challenges DBS commercial initiatives driving better go-to-market capabilities and accelerating growth 68

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70 SUMMARY Jennifer Honeycutt, President of Pall 2018 PALL INVESTOR & ANALYST DAY

71 What You Heard Today: Key Priorities at Acquisition ACCELERATE INNOVATION Accelerating innovation through reinvestment and focused R&D processes Lean Leadership Growth IMPROVE EXECUTION DBS commercial initiatives driving better goto-market capabilities; meaningful gains in quality & delivery REDUCE COSTS Reducing manufacturing & operating costs Lean Leadership Growth Tailored integration led by DBS 71

72 Putting It All Together RUNNING THE DANAHER PLAYBOOK RESULTS SINCE ACQUISITION IMPROVE COST STRUCTURE Gross Margins G&A AT ACQ. TODAY Core Growth LSD MSD* REINVEST FOR GROWTH ACCELERATE MARGINS & CORE GROWTH R&D Core Growth S&M OMX Gross Margin ~50% ~55% OP Margin High-teens >25% G&A** R&D** S&M** >25% ~5% ~7% * YTD through Q2 18 ** $ spend Running the Danaher Playbook has helped Pall s great start 72

73 DBS Is Our Competitive Advantage Leadership Lean Growth DBS is who we are, and how we do what we do 73

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75 Non-GAAP Reconciliation Danaher Corporation Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures ($ in Millions) Year Ended December 31, 2017 Life Sciences Operating Profit (GAAP) $ 1,004.3 Other Income - Depreciation Amortization Segment EBITDA (Non-GAAP) $ 1,432.3 Net Sales $ 5,710.1 Segment EBITDA Margin (Non-GAAP) >25% (1) Management defines "Segment EBITDA" as GAAP operating income for the segment excluding (1) depreciation and (2) amortization, and defines "Segment EBITDA Margin" as Segment EBITDA divided by sales for the particular segment. 75

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